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Posts Tagged ‘rising yuan’

China’s yuan takes leap toward joining IMF currency basket

Posted by seumasach on November 15, 2015


14th November, 2015


China’s yuan moved closer to joining other top global currencies in the International Monetary Fund’s benchmark foreign exchange basket on Friday after Fund staff and IMF chief Christine Lagarde gave the move the thumbs up.
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Dollar hegemony under attack by export-superpowers Germany and China

Posted by seumasach on March 30, 2014

Testerone Pit

29th March, 2014

The word dollar didn’t even come up. “The volume of transactions that can be carried out in the Chinese currency in international and German financial centers is not commensurate with China’s importance in the global economy,” the Bundesbank explained in its dry manner on Friday in Berlin, after signing a memorandum of understanding with the People’s Bank of China. President Xi Jinping and Chancellor Angela Merkel were looking on. It was serious business. Everyone knew what this was about. No one had to say it.

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Bundesbank, PBOC in pact to turn Frankfurt Into Renminbi hub

Posted by seumasach on March 30, 2014


27th March, 2014

Germany’s Bundesbank and the People’s Bank of China agreed to cooperate in the clearing and settling of payments in renminbi, paving the way for Frankfurt to corner a share of the offshore market.

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Asian economies turn to yuan

Posted by seumasach on October 24, 2012

China Daily

24th October, 2012

A “renminbi bloc” has been formed in East Asia, as nations in the regionabandon the US dollar and peg their currency to the Chinese yuan — a majorsignal of China’s successful bid to internationalize its currency, a researchreport has said.

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China-Japan currency deal ushers in a new era

Posted by seumasach on May 30, 2012

China Daily

30th May, 2012

China and Japan will start direct trading of their currencies on Friday in a move to boost trade ties between Asia’s two biggest economies.

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China on gold buying binge

Posted by seumasach on November 23, 2011


23rd November, 2011

China On Gold Buying Binge, Altering World Market Prices

China‘s think tanks are on it again. Long before the 20th century fiscal crisis happened, the country’s brilliant economists and analysts had long prepared the Asian country to counter possible ill effects of a slowing down economy. Proof of that had shown China‘s continuing resilience compared to the Eurozone’s impending financial crash.

And it what seems to be another macro-economic preparation, China has been encouraging its citizens to buy and hold physical gold, either in jewelry, coins or in bullion bars, in a bid to build financial reserves in assets stronger than the U.S. dollar, euro, and other weakening currencies.

China has been buying into the global gold market and had made it easier for investors to buy and invest in the yellow metal. In fact, Chinese consumer demand for gold hiked 25 per cent overall this year, higher than the 7 per cent global average.

“The bottomline (really is), China wants to dislodge the dollar as the world’s main reserve currency,” Larry Spears wrote in

The World Gold Council (WGC), in March 2010, predicted that Chinese gold demand would double by 2020. “We now believe this doubling may, in fact, be achieved far sooner,” Albert Cheng, WGC Far East Managing Director, said.

Years ago, the Chinese were prohibited to buy physical gold or else be imprisoned, until 2002, when government lifted the ban. Since then, federal government created policies and encouraged the people to own the precious yellow metal. In China nowadays, state-owned China Central Television even airs news programs describing how fast and easy it is to buy and sell gold and silver. China further pushed gold towards its citizens, making in within hands’ reach, when it launched the gold vending machines, letting customers easily buy gold coins and bars using cash, debit cards and credit cards.

These developments did not only put a pressure on gold prices, but likewise gave the Chinese currency yuan a bigger role in global trade.

There is currently a new “Renminbi Kilobar Gold” which is the world’s first offshore yuan-denominated spot gold contract. It started trading on the Hong Kong’s Chinese Gold & Silver Exchange in mid-October. It is open to individual Chinese investors and is denominated in something other than Hong Kong dollars.

Spears said that while the contract primarily aims to entice Chinese retail investors, foreign private and institutional investors who prefer yuan-denominated products may consider and also be attracted to it as an alternative reserve currency to the embattled dollar and euro.

“This will increase the yuan’s role in global investment, something China has been working on for years,” Spears said.

“For Westerners who are struggling to come to terms with the notion of a disarrayed dollar, the thought of oil, gold or other commodities being priced in yuan instead of dollars has to seem about as likely as having another country put a man on the moon,” Spears quoted Money Morning Chief InvestmentStrategist Keith Fitz-Gerald in May 2009. “But the Chinese yuan is already well on its way to becoming that globally accepted standard unit of exchange, and the proverbial genie, as they say, is out of the bottle.”

The yuan has appreciated about 3.7 per cent this year against the dollar, but isn’t expected to gain more.

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China Spearheads Dollar Dethroning

Posted by smeddum on April 27, 2009


Jim Willie CB                        April 23, 2009

home: Golden Jackass website
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Jim Willie CB is the editor of the “HAT TRICK LETTER”

Use the above link to subscribe to the paid research reports, which include coverage of several smallcap companies positioned to rise during the ongoing panicky attempt to sustain an unsustainable system burdened by numerous imbalances aggravated by global village forces. An historically unprecedented mess has been created by compromised central bankers and inept economic advisors, whose interference has irreversibly altered and damaged the world financial system, urgently pushed after the removed anchor of money to gold. Analysis features Gold, Crude Oil, USDollar, Treasury bonds, and inter-market dynamics with the US Economy and US Federal Reserve monetary policy.

In a series of maneuvers, Chinese officials have revealed their strategy implementation in a very broad set of steps. Beijing leaders plan to establish the yuan currency as a global reserve currency. The process will be made more complete after issuance of a large volume of Chinese Govt debt securities, soon in coming. The number of policy actions is impressive. While the USGovt is busy stepping backwards with FASB rules enabling false bank accounting, gearing up Treasury programs to direct colossal elite welfare / confiscation to failed banks responsible for the crisis, covering up Wall Street fraud and regulatory lapses and debt rating agency collusion, and ordering pork like the $9 billion high speed train from Disneyland to Las Vegas, the Chinese are making important meaningful critical strides. Within a year, the Chinese will have established the yuan currency as a legitimate alternative to the USDollar for global trade, and later to some extent for global banking. The Chinese Govt has ordered monetary policy changes that have boosted their money supply by 25.5% over the last twelve months, with a giant stimulus program and relaxed bank credit rules. Since new maneuvers are being funded by incremental new surplus funds, they are exhibiting their financial power without upsetting their vast reserves accounts. The lost in the USCongress might talk about ‘Pay-Go’ measures to pay for programs as we go forward, but China does it in actual terms. Read the rest of this entry »

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